Real estate development, or property development, is a multifaceted business, encompassing activities that range from the renovation and re-lease of existing buildings to the purchase of raw land and the sale of improved land or parcels to others.Many real estate investors are keen to step up to the next level and get involved in property development. Let’s look at these in detail.
What is property development?
It is the continual reconfiguration of the built environment to meet society’s needs. Somebody must motivate and manage the creation and eventually the recreation of the spaces in which we live, work and play. The need for development is constant because of our massive population growth and the changing tastes of how we want to live. Developers are the coordinators of the activities, converting ideas on paper into real property. Real estate development is different from construction, although many developers also construct. Developers buy lands, finance real estate deals, build or have builders build projects, create, imagine, control and orchestrate the process of development from the beginning to end.
What makes a good property developer?
Successful property developers aren’t born and they’re definitely not created overnight. Their success comes from a combination of attitude, experience, education, instinct and the lessons learned from both victories and failures. Property development is an extremely creative process. Successful property developers are a bit like movie producers. They take a project from the conception of an idea in somebody’s mind through the design and process the approval phase, financing, construction, marketing and then eventually the leasing or sale of the project.
Characteristics of a Developer
Developer assembles a highly talented team of people and skill-fully led them to develop a profitable outcome, which means they need to be proactive and make things happen. They must also be creative, flexible and adaptive to take their project through this maze. Developers need to work hard, have patience, remain focused and have a burning determination to succeed. While the process of property development can be a lot of fun, it is not without some pain and considerable risk. Developers follow a sequence of steps from the moment they first conceive a project to the time and they complete the physical construction and begin ongoing asset management.
Who can become a property developer?
The big development projects are usually constructed by large corporations, many of the medium density developments in the suburbs of the capital city are run by part time property developers who have a “real” full time job. Some are in property related industries such as builders, architects or estate agents, but many are “ordinary” successful property investors who are now looking at development to fast track their wealth.
If you are looking for Melbourne’s property specialists, talk to us at Carter Property Enterprises.